FCA instructions for the Brexit implementation period

The Financial Conduct Authority (FCA) publish today guidelines for financial services firms as Brexit is looming over. On 31 January at 11pm the UK is set to leave the European Union (EU). The FCA informs that the implementation period ends on 31 December 2020, until then EU law will continue to apply. UK firms and funds will still benefit from the European Economic Area (EEA) regulation. Consumer rights ad protections from EU law will also remain in effect.

Reporting obligations for firms will also remain as they are and abide existing EU regulatory requirements, including those for MiFIR transaction reporting, under EMIR, and for CRAs.

The deadline for EEA firms to request Temporary Permissions Regime (TPR), and fund managers to apply for the Temporary Marketing Permissions Regime (TMPR) for funds marketed in the UK, ends today. A new deadline maybe set for submitting notifications before the end of the implementation period.

Andrew Bailey, Chief Executive of the Financial Conduct Authority, said:

The work the FCA has undertaken, along with government and the Bank of England, ensured the financial services sector was one of the best prepared industries for any of the possible Brexit outcomes. The implementation period gives firms a period of certainty while negotiations are continuing on our future relationship with the EU.

The FCA intends to use this time to work with government, the Bank of England, firms and other regulators to ensure the financial services industry is ready for the end of 2020. We will continue to keep firms and consumers updated on any changes that will impact them.

Going forward, FCA urges all financial services companies to take the time to consider the impact Brexit would have on their business and prepare for minimizing risk for their customers in 2021.

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